Chances are, the problem is on their side. They need to be sure that it was loaded to their authorized_keys file and that the permissions going down to the $HOME/.ssh directory are set restrictive enough. Also, they need to be sure that the $HOME/.ssh/authorized_keys file they placed your public key into is that of the user with which you are trying to connect. The public key authentication is failing though. You can see it here being attempted.

Thanks Guys, i'm able to resolve the issue. We asked the vendor for their Solaris logs - /var/adm/message , /var/adm/sshauthlog, /var/adm/authlog and then able to figure it out.

The user id they created is in all upper case, and we were using lower case..! I never heard a situation where the user name is case sensitive, esp. for an ftp server.... Even our unix admin is stumpted on it!